SHANGHAI, Oct. 16 (SMM) – LME three-month copper plunged by 2.6% to USD 6,620/mt Wednesday.
The US PPI fell 0.1% in September, posting its first decline in one year. Retail sales dropped 0.3% during the same month, falling for the first time in eight months. NY Empire State manufacturing index for October slumped to 6.2, well below the five-year high of 27.5 in September, a six-month low, due to a plummet in new orders index. The US dollar index fell sharply in response, but copper prices did not gain impetus from the weakening dollar. US stocks also collapsed after starting lower, presenting a 460-point decline. The CBOE volatility index thus surged 18% to a 34-month high of 26.77.
The most active SHFE copper contract opened lower at RMB 47,920/mt during Wednesday’s night session, and tested a low of RMB 47,570/mt before ending down RMB 680/mt at RMB 48,500/mt. Trading volumes of the most active contract rose to 280,000 lots, and positions increased 3,144 lots. Holdings in SHFE 1501 copper contract rose by 20,000 lots.
SHFE 1412 copper contract may trade at RMB 47,500-48,000/mt on Thursday. In China’s spot markets, copper will be offered at premiums of RMB 120-200/mt against SHFE 1411 copper contract prices.